Debt concerns continue to rock European markets which closed considerably lower. Sentiment continued to be impacted as markets shrugged of data which showed strong domestic demand that lifted GDP growth in Germany and France.
In an interview with CNBC-TV18, Arjuna Mahendran, the managing director of Head Investment Strategy Asia, HSBC Private Bank said that looking ahead, the European Central Bank will likely be forced to buy bonds of France and Italy.
His call on the S&P by the end of the year is at 1,200 levels.
On Indian equities, he finds that the Eurozone's worries have pushed our market into risk aversion mode. "Even the BRIC countries have performed better than India in the last few weeks," he added. Below is an edited transcript. Watch the accompanying video for more. Q: India seems to have hit a patch of underperformance again. Anecdotally are you hearing anything about liquidity turning negative again on this market or people underweighting this market even further?
A: It
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